Bombay High Court Grants Judgment on Admission in Favor of Plaintiff in Redevelopment Dispute — Developer Admits Entitlement to Alternate Flat. Court holds that admission of claim for specific performance entitles plaintiff to judgment on admission under Order XII Rule 6 CPC, and additional FSI benefits under DC Rules 1991 are to be shared equally as per agreement.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The plaintiff, a member of defendant No.2 society, filed a suit against defendant No.1 developer and defendant No.2 society seeking entitlement to flat No.702 admeasuring 830 sq. ft carpet area in a redeveloped building and for execution of a fresh permanent alternate accommodation agreement. The plaintiff also sought ancillary reliefs. The plaintiff took out a notice of motion for injunctions and appointment of a Court Receiver. The defendant took out a notice of motion for judgment on admission in terms of prayers (b) and (c) of the plaint, or alternatively for restriction of the interim order to flat No.702. The parties had entered into a redevelopment agreement dated 14th October, 2010. Under clause 6 of the agreement, any additional FSI due to changes in the Development Control Regulations for Greater Mumbai, 1991 (DC Rules) would be shared equally between the plaintiff and the developer. Subsequently, the DC Rules changed, providing for fungible FSI up to 35% for residential development under Rule 35(4). The defendant admitted the plaintiff's claim for execution of the fresh permanent alternate accommodation agreement in respect of flat No.702. The court held that since the defendant accepted the grant of the relief, the plaintiff was entitled to a judgment on admission under Order XII Rule 6 of the Code of Civil Procedure, 1908. The court also held that the plaintiff was entitled to share in the additional FSI benefits arising from the change in DC Rules, including the fungible FSI. The court granted judgment in terms of prayer (b) of the plaint and directed the defendant to execute the fresh permanent alternate accommodation agreement in respect of flat No.702 admeasuring 830 sq. ft carpet area.

Headnote

A) Civil Procedure - Judgment on Admission - Order XII Rule 6 CPC - The defendant admitted the plaintiff's claim for execution of a fresh permanent alternate accommodation agreement in respect of flat No.702 admeasuring 830 sq. ft carpet area. The court held that since the defendant accepted the grant of the said relief, the plaintiff was entitled to a judgment on admission in terms of prayer (b) of the plaint. (Paras 3-4, 7)

B) Contract - Redevelopment Agreement - Sharing of Additional FSI - Clause 6 of the agreement dated 14th October, 2010 provided that any additional FSI due to change in DC Rules would enure to the plaintiff and developer equally. The court held that the plaintiff is entitled to share in the additional FSI benefits arising from the change in DC Rules, including fungible FSI under Rule 35(4) of the DC Rules, 1991. (Paras 5-6)

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Issue of Consideration

Whether the plaintiff is entitled to a judgment on admission in terms of prayer (b) of the plaint for execution of a fresh permanent alternate accommodation agreement in respect of flat No.702 admeasuring 830 sq. ft carpet area, and whether the plaintiff is entitled to share in additional FSI benefits under the redevelopment agreement.

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Final Decision

The court granted judgment on admission in favor of the plaintiff in terms of prayer (b) of the plaint, directing the defendant to execute a fresh permanent alternate accommodation agreement in respect of flat No.702 admeasuring 830 sq. ft carpet area. The court also held that the plaintiff is entitled to share in the additional FSI benefits arising from the change in DC Rules, including fungible FSI under Rule 35(4).

Law Points

  • Judgment on admission
  • Order XII Rule 6 CPC
  • Specific performance
  • Redevelopment agreement
  • Fungible FSI
  • Sharing of additional FSI
  • Development Control Regulations for Greater Mumbai
  • 1991
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Case Details

2015 LawText (BOM) (06) 88

Notice of Motion No. 1519 of 2013 in Suit No. 760 of 2013 with Chamber Summons No. 1123 of 2014 in Suit No. 760 of 2013 with Notice of Motion (L) No. 1961 of 2014 in Suit No. 760 of 2013

2015-06-15

Mrs. Roshan Dalvi, J.

Mr. Kaushal A. Tamhane a/w. Pranesh J. Gada, a/w Ms. Meenakshi Dhanuka i/b. M/s. Dhanuka & Partners for the Plaintiff; Mr. G.N. Salunke a/w. Mr. S.R. Sharma for Defendant No.1; Mr. Shreepad Murthy i/b. Pinky M. Bhansali for Defendant No.2

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Nature of Litigation

Civil suit for specific performance of redevelopment agreement seeking execution of fresh permanent alternate accommodation agreement and sharing of additional FSI benefits.

Remedy Sought

Plaintiff sought execution of a fresh permanent alternate accommodation agreement in respect of flat No.702 admeasuring 830 sq. ft carpet area and ancillary reliefs.

Filing Reason

Defendant developer failed to execute the fresh permanent alternate accommodation agreement despite admitting the plaintiff's entitlement.

Issues

Whether the plaintiff is entitled to a judgment on admission in terms of prayer (b) of the plaint for execution of a fresh permanent alternate accommodation agreement. Whether the plaintiff is entitled to share in additional FSI benefits under the redevelopment agreement.

Submissions/Arguments

Plaintiff argued that under clause 6 of the redevelopment agreement, any additional FSI due to change in DC Rules should be shared equally between plaintiff and developer. Defendant No.1 admitted the plaintiff's claim for execution of the fresh permanent alternate accommodation agreement in respect of flat No.702.

Ratio Decidendi

Where a defendant admits the plaintiff's claim for specific performance of a contract, the court may pass a judgment on admission under Order XII Rule 6 CPC without requiring further proof. Additionally, under a redevelopment agreement, any additional FSI arising from changes in DC Rules is to be shared equally between the member and the developer as per the contractual terms.

Judgment Excerpts

The plaintiff has claimed the said relief in prayer (b) to the plaint and the defendant accepts the grant of the said relief. Under clause 6 of the said agreement the plaintiff claims that any additional FSI due to any change in the Development Control Regulations for Greater Mumbai, 1991 (D.C. Rules) a Government policy would enure to the plaintiff as the member of defendant No.2 society and the developer, defendant No.1, equally.

Procedural History

The plaintiff filed Suit No. 760 of 2013 seeking specific performance of redevelopment agreement. The plaintiff took out Notice of Motion No. 1519 of 2013 for interim reliefs. The defendant took out Chamber Summons No. 1123 of 2014 for judgment on admission and Notice of Motion (L) No. 1961 of 2014 for modification of interim order. The court heard all matters together and pronounced judgment on 15th June, 2015.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XII Rule 6
  • Development Control Regulations for Greater Mumbai, 1991: Rule 35(4)
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